Although the rate of homeownership for people 25 to 34 is lower than in previous generations, 1 in 3 millennials owned homes as of the end of 2018. Many more of them are looking and buying today, in a market with interest rates that should make everyone look up and take notice. Some rates are now as low as 2.5%, and we all know that what your interest rate is matters more than the price of the home, within reason. Over the life of a mortgage, you will be saving tens of thousands of dollars by buying when rates are so low.
Even if the economy during a pandemic weren't enough to drive rates down, the presidential election would be. Every four years, there is a downward spike before Election Day, which gives you six weeks or so to capitalize on that trend and buy. As our agents know, I remind buyers every year at this time that it's the best time of the year to buy a house, and, every four years, it's slightly better. My running friend Ray Fair, a Yale professor who predicts presidential elections, has a model that favors an incumbent with a low unemployment rate and a high growth rate. Presidents instinctively know this, and do their best to improve re-election chances by boosting the economy wherever possible. This year is no exception, and, if you are in the market to move, it's a great chance for you to do so.
Greater New Haven has also been featured as a region where renting is more expensive than owning, so there's another reason to become a homeowner. Why pay rents that are higher than in some other places, due to the number of students on top of regular demand, when you could own for a lower monthly outlay?
Not convinced yet? If you think you might be working from home in the foreseeable future, this is the time to make sure that you have a comfortable place to live and to work. Demand is high, and supply is low, but our prices are still lower than many other metro areas, and have not really gone up in many years. While they are rising now, you still can get into the market before you get priced out.
You don't have to be a millennial to buy, and to buy now, so the reasons above apply to all age groups. While younger buyers are looking to leave cities, start families, and build equity, there are plenty of factors to cause everyone to start searching. Happy hunting!
